Tax Musings of a Burbank CPA: CPAs Sue IRS over PTIN Fees

If you are a CPA, Enrolled Agent or other paid tax preparer, every year from October through December you are required to renew your Preparer Tax Identification Number with the IRS to be allowed to prepare returns for the next year.  You are also required to pay a fee of around $65 at the same time to said IRS.  With the IRS being rebuffed in court regarding requiring the Registered Tax Return Preparer designation of all preparers (along with required license and continuing education fees), a group of CPA have filed a suit that says the IRS doesn’t have the authority to levy the PTIN fee and requesting all fees from 2010 be refunded to preparers.  See this article in Accounting Today by Michael Cohn for the details:

http://www.accountingtoday.com/news/legal-watch/cpas-sue-irs-over-ptin-fees-71919-1.html

Before the court ruling I would have said ‘good luck with that lawsuit’, but now I wonder how it will turn out.  As more details come to light, I will let you know.

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